What to do if you’re struggling to pay your mortgage?
If you’re struggling to pay your mortgage, it’s important to take swift steps to address the situation. Some borrowers may want to remortgage to a better deal while others will prefer to budget.
Contact your lender if you experience difficulties
Contact your mortgage lender as soon as you realise you’re facing financial difficulties. Lenders are usually willing to work with borrowers who are honest about their financial situation.
Explain the reasons for your money struggles
Clearly communicate the reasons for your difficulties to your lender who will be sympathetic. This could be a job loss or medical issues which affect employment and income. Provide any documentation that may help your case.
Explore any repayment options
Ask about possible repayment options, such as a temporary halt to payments or interest-only payments. Some lenders may be willing to modify the terms of your mortgage to make it more manageable in the short term. It’s good news for homebuyers who are struggling to get onto the property ladder. According to The Independent, major UK lenders have announced mortgage rate cuts, allowing borrowers to secure deals under the 5% mark.
Get a Deed of Trust in place
A Deed of Trust will also help you financially. This is similar to a prenuptial agreement in that it ensures the assets of the partners are safe if a dispute should occur. When you buy a property, the monetary value is immense and signing a Deed or Declaration of Trust offers peace of mind. For more information on this option visit https://www.samconveyancing.co.uk/news/conveyancing/deed-of-trust-4378.
Budget and prioritise your purchases
Sit down with the family and review your budget to identify areas where you can cut expenses. Prioritise mortgage payments and food. If your situation is expected to improve in the near future, explore refinancing your mortgage.